P.R. Laws tit. 26, § 1364
(1) Life insurance under a franchise plan is that which is issued to three or more employees of a common employer, or three or more members of a bona fide association or labor union organized and existing for purposes other than the obtaining of insurance, and according to which individual policies are issued to such employees or members. The premiums of these policies shall be paid to the insurer periodically through deductions in the payroll, or without deduction, by the employer or by the association, or by any employee or director of the association designated to act on behalf of the employer or of the association’s members.
(2) The term employer also includes the directors of the employer and the employer or the partners, if the employer is a person or a partnership.
(3) No life insurance policy under a franchise plan may be issued to the employees of an employer or the members of an association which provides a life insurance that, together with any other life insurance under a franchise plan issued to said employees or members, exceeds $150,000, unless [two hundred percent] (200%) of the annual compensation of such an employee or member exceeds $150,000, in which event the life insurance under the franchise plan shall not exceed $300,000, or [two hundred percent] (200%) of said annual compensation, whichever is the lesser.
(4) The life insurance under a franchise plan may be extended to cover the lives of the spouse and dependent children of the insured employee or member. The amount of insurance on the life of the spouse shall not exceed [fifty percent] (50%) of the amount of insurance on the life of the insured employee or member, or $75,000, whichever is the lesser, and the amount of insurance on the life of the dependent children shall not exceed $6,000.
(5) As of the second year after the effective date of this act, the sums of the life insurance and the percentages authorized by this chapter may be increased in accordance with the increases in cost of living as published by the Federal Department of Commerce.
(6) An insurer may charge different rates, provide different benefits or employ different procedures to underwrite insurances for insureds under a franchise plan, if such rates, benefits or procedures, as used, do not establish an unfair differentiation between franchise plans and insureds under those plans that essentially have the same factors of insurance, risks, exposition or expense elements.
(7) Life insurance policies under a franchise plan shall contain the standard provisions required by § 1337 of this title.
History —Ins. Code, added as § 13.300 on Nov. 9, 2007, No. 165, § 1, eff. 90 days after Nov. 9, 2007.